CUNA Testifies on Interchange This Week Posted by AVCU on 10:19 AM

Mark Caverly of Local Government FCU is scheduled to testify this Thursday at a Congressional hearing on interchange fees. He will speak on behalf of CUNA and the Electronic Payments Coalition. Is EVP of the Raleigh, N.C.-based credit union, and will testify before the House Financial Services Committee on H.R. 2382, the Credit Card Interchange Fees Act of 2009 and H.R. 3639, the Expedited CARD Reform for Consumers Act of 2009.

The proposed interchange bill, introduced by Vermont’s Peter Welch, would amend the Truth in Lending Act to prohibit certain electronic payment system network practices and required increased disclosures.
CUNA adheres to the position that changing the current interchange fee structure, as some merchants, including 7-Eleven, have promoted would adversely limit consumer options, competition and technological innovation. Interchange fees allow business costs, including the risk of consumer non-payment, to be shared by the payments participants and discussions regarding what value should be placed on the use of electronic payments should be among industry participants. Legislation that would allow merchants to negotiate interchange fees has also been introduced in the Senate.

On CARD Act reform, H.R. 3639 would move up the effective date of some portions of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act to December of this year. Bill sponsor Rep. Carolyn Maloney (D-N.Y.) says that the "breadth and depth" of interest-rate hikes that credit card companies are imposing ahead of the full imposition of the CARD Act points to the need for "faster consumer protections."

A nationwide Call-to-Action to combat efforts by the nation’s retailers to modify the plastic card interchange system was launched last weekend. Credit union employees, volunteers and members are encouraged to visit CUNA’s Grassroots Action Center, where pre-written talking points can be inserted into your message, personalized if you like, and sent via e-mail or fax with a simple click. Your zip code tells your message to automatically be directed to the appropriate legislators.